Statutes Chapter 105, Article 5
Administrative Code
Technical Bulletins


North Carolina - Sales and Use Tax Exemptions and Exemption Certificates

North Carolina sales tax is a privilege tax imposed on a retailer on net taxable sales or gross receipts from sales at retail of tangible personal property and certain services. (N.C. Gen. Stat.§105-164.4.)


Sales and use tax exemptions are grouped as: Agricultural Exemptions (N.C.Gen.Stat.§105-164.13.(1)-(4), Industrial Exemptions (N.C.Gen.Stat.§105-164.13.(5)-10), Motor Fuel Exemptions (N.C.Gen.Stat.§105-164.13.(10(a)-11(a), Medical Exemptions (N.C.Gen.Stat.§105-164.13.(12)&(13), Printed Material Exemptions (N.C.Gen.Stat.§105-164.13.(14), Transactions Exemptions (N.C.Gen.Stat.§105-164.13.(15)-(17), Exempt Status Exemptions (N.C.Gen.Stat.§105-164.13.(17) and Unclassified Exemptions (N.C.Gen.Stat.§105-164.13.(18)-(59)

CAUTION: Sales tax exemptions mentioned above are very briefly described. Please see the exemption statute and the applicable regulations for details. Transactions that do not meet the requirements of the exemption statute and its applicable regulations do not qualify for the sales tax exemptions.

NORTH CAROLINA EXEMPTION CERTIFICATES: An exemption certificate authorizes a retailer to sell an item to the holder of the certificate and either collect tax at a preferential rate or not collect tax on the sale, as appropriate. The Secretary may require a person who purchases an item that is exempt from tax or is subject to a preferential rate of tax depending on the status of the purchaser or the intended use of the item to obtain an exemption certificate from the Department to receive the exemption or preferential rate.

A purchaser engaged in the business of selling tangible personal property at retail or wholesale and makes purchases of tangible personal property for the purpose of resale shall furnish to his vendors either: (1) Streamlined Sales Tax Agreement Certificate of Exemption, Form E-595E, or(2) other evidence in writing adequate to support the conclusion the property is being purchased for the purpose of resale by the registered purchaser.

(N.C.Gen.Stat.§ 105-164.28A, 17 NCAC 07B .0106)


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